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USPS-FedEx Deal Under Fire

Washington—On April 9 the U.S. Justice Department began to look at possible antitrust implications concerning the Postal Service’s $6.3 billion no-bid contract it signed with Federal Express. The deal would have FedEx transport USPS Express Mail and Priority Mail in exchange for the rights to place FedEx drop boxes in post offices. The USPS’s own Office of the Inspector General is reviewing the deal too.

According to an Associated Press report, air carrier Emery Worldwide, which previously had a contract with the USPS to fly mail overseas, complained to the USPS Board of Governors (BOG) that it had been misinformed prior to approving the deal in January. Emery said in a statement to the BOG that the FedEx deal could hinder service and cost the USPS more than would transporting mail without FedEx. Both USPS and FedEx sources have said that they remain confident that the deal will get done.